I will continue in French.
Each year the government disburses ad hoc payments to address unpredictable hardships faced by farmers. This ad hoc funding—defined as funds in excess of CAIS and Production Insurance—–averaged $2.5 billion per year for 2004-2006 according to Statistics Canada.
Traditionally, approximately 60% of total money spent is federal funding, making the federal contribution to ad hoc spending $1.53 billion per year in excess of CAIS and production insurance.
AgriFlex, with BRM, would provide sufficient flexibility in program design and delivery to respond quickly to emerging regional agricultural priorities. AgriFlex, with BRM, compliments and advances key objectives established in the Growing Forward documents. AgriFlex, with BRM, would be distributed to provinces and territories for flexible funding that will be used to address the unique needs of regions and agricultural sectors across the country. Fund distribution would be based on a formula that addresses the total agricultural value of production in individual provinces and territories.
AgriFlex, with BRM, would allow provinces and territories to direct their portion of funds to agricultural sectors where the need is greatest, complimenting existing federal programs, or to areas that are not sufficiently addressed by existing federal programs, or to start new programs.
When used to complement existing federal BRM programs, payments through AgriFlex could offset payments of other programs. Producers would only be allowed to receive payment from one program that addresses the specific need in a given year.
We are not alone. At the last federal-provincial-territorial meeting in July, the provincial ministers of agriculture asked the Minister of Agriculture and Agri-Food, Mr. Ritz, to conduct a strategic review of risk management programs. They also asked that an industry engagement strategy be developed as quickly as possible. The federal minister has committed to reporting back to the provincial ministers in early 2010. We offered our experience and expertise to the federal government for this review but have not yet heard back. Furthermore, Quebec, Ontario, Alberta and Saskatchewan have also indicated that they would like to work with the federal government under companion programs.
Thank you again for the opportunity to present to the pre-budget consultations and we look forward to working with the federal government to keep agriculture strong in Canada.
Thank you very much.